Air India’s performance has improved, to be EBITDA positive in current fiscal year: Economic Survey

India's Government, in the Economic Survey 2012-2013 'Energy, Infrastructure and Communications' section, expressed (27-Feb-2013) optimism about Air India's recovery saying the company will turn EBITDA positive in the current financial year. "It is expected that the company will achieve positive EBIDTA (earnings before interest, taxes, depreciation and amoritisation) in the results for the Financial Year 2012-13," it said. The Survey also noted the improved performance of Air India for the first half of the fiscal year, which it deems in line with the targets set in the financial Turn Around Plan (TAP) for the airline. "AI has registered an all round enhanced performance such as on-time performance at 85 per cent, passenger load factor at 70.9 per cent, and yield at Rs 4.31 per revenue passenger kilometre," it said. Air India, the Survey said, had taken several initiatives to reduce costs and enhance revenues such route rationalisation, phasing out and grounding of old fleet, freezing of employment in non-operational areas, leveraging assets of the company to increase MRO revenue and revenue from the Company's real estate properties. As part of its Turnaround Plan, the airline had also initiated measures to operationalise subsidiary companies in ground handling and MRO and transferring manpower and equipment to them to make them independent profit centres. [more - original PR]